HONOLULU — Weekly wages in Hawai'i rose 2 percent in the first three months of the year compared to last year, but Island workers still made less than the national average, the U.S. Department of Labor said yesterday.

The government said weekly wages in Hawai'i averaged $669 between January and March of this year.

The national average was $775. The department also ranked the Islands 28th out of the 50 states and the District of Columbia.

More tourists and a construction boom fed by Mainland investment have spurred Hawai'i's economic growth in recent years, pushing the state's unemployment rate down to 2.7 percent — the lowest in the nation.

But since much of the job growth has been in the service sectors catering to tourists, such as hotels and restaurants, wages still remain below national averages.

In contrast, Hawai'i is one of the most expensive states to live in, with gas prices topping national lists and real estate values among the priciest, which squeezes workers.

Honolulu Mayor Mufi Hannemann has said one of his goals is to bring higher-paying jobs to O'ahu.

He has said he wants to attract companies that pay "living-wage salaries that allow people to have a good career that pays $75,000 and above."

"You always want quantity of jobs, but you also want quality of jobs," he said at a job fair two months ago.

The Department of Labor said workers in the District of Columbia made the most in the nation in the first quarter, earning an average of $1,277 per week. Workers in New York came in second with $1,096.

The nation's lowest-paid workers live in Montana, where the average wage was $533 per week between January and March.

South Dakota, Mississippi, and North Dakota followed.

By city, Honolulu figured in the bottom half, ranking 173rd out of the 322 counties boasting at least 72,000 jobs.

Honolulu wages rose 1.5 percent compared to the first quarter of last year to $693 per week. The highest-paid workers were in New York City, earning an average of $2,025 per week.